China Pharma (CPHI) 10-Q 14 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 11, 2014
Document and Entity Information	'	'
Entity Registrant Name	'CHINA PHARMA HOLDINGS, INC.	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Amendment Flag	'false	'
Entity Central Index Key	'0001106644	'
Current Fiscal Year End Date	'--12-31	'
Entity Common Stock, Shares Outstanding	'	43,579,557
Entity Filer Category	'Smaller Reporting Company	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Well-known Seasoned Issuer	'No	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current Assets:	'	'
Cash and cash equivalents	$4,425,744	$5,993,139
Banker's acceptances	92,832	336,003
Trade accounts receivable, less allowance for doubtful accounts of $24,499,361 and $13,301,622, respectively	35,904,934	45,147,602
Other receivables, less allowance for doubtful accounts of $60,083 and $43,064, respectively	482,862	175,739
Advances to suppliers	7,142,290	7,626,716
Inventory, less allowance for obsolescence of $7,968,701 and $8,027,126, respectively	20,960,894	24,677,120
Total Current Assets	69,009,556	83,956,319
Advances for purchases of intangible assets	41,397,984	41,701,505
Property and equipment, net of accumulated depreciation of $5,628,507 and $5,264,350, respectively	34,115,618	30,241,337
Intangible assets, net of accumulated amortization of $3,978,083 and $3,812,992, respectively	1,506,490	1,711,793
TOTAL ASSETS	146,029,648	157,610,954
Current Liabilities:	'	'
Trade accounts payable	2,541,166	1,877,437
Accrued expenses	293,539	323,651
Other payables	1,179,720	1,312,361
Advances from customers	1,626,334	2,228,238
Other payables - related parties	1,354,567	1,354,567
Short-term notes payable	4,873,928	4,909,662
Total Current Liabilities	11,869,254	12,005,916
Non-current Liabilities:	'	'
Construction loan facility	12,997,141	12,484,183
Long-term deferred tax liability	213,575	176,414
Total Liabilities	25,079,970	24,666,513
Stockholders' Equity:	'	'
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued or outstanding	0	0
Common stock, $0.001 par value; 95,000,000 shares authorized; 43,579,557 shares and 43,579,557 shares outstanding, respectively	43,580	43,580
Additional paid-in capital	23,590,204	23,590,204
Retained earnings	77,862,833	88,896,276
Accumulated other comprehensive income	19,453,061	20,414,381
Total Stockholders' Equity	120,949,678	132,944,441
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$146,029,648	$157,610,954

Balance_Sheets_Parentheticals

Balance Sheets Parentheticals (USD $)	Jun. 30, 2014	Dec. 31, 2013
Balance Sheets Parentheticals	'	'
Allowance for doubtful accounts ,Trade accounts receivables	$24,499,361	$13,301,622
Allowance for doubtful accounts , Other receivables	60,083	43,064
Allowance for obsolescence, Inventories	7,968,701	8,027,126
Accumulated depreciation of Property and equipment	5,628,507	5,264,350
accumulated amortization of Intangible assets	$3,978,083	$3,812,992
Preferred Stock, shares authorized	5,000,000	5,000,000
Common Stock, par value	$0.00	$0.00
Common Stock, shares authorized	95,000,000	95,000,000
Common Stock, shares outstanding	43,579,557	43,579,557

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenues [Abstract]	'	'	'	'
Revenue	$6,130,544	$8,026,325	$13,236,059	$16,275,712
Cost of revenue	3,713,147	5,849,002	8,158,276	11,974,402
Inventory obsolescence	0	27,178	0	3,720,073
Gross profit	2,417,397	2,150,145	5,077,783	581,237
Operating expenses:	'	'	'	'
Selling expenses	627,442	701,687	1,447,847	1,513,741
General and administrative expenses	382,832	591,251	806,759	1,164,263
Research and development expenses	1,902,027	865,249	2,346,434	1,031,664
Bad debt expense (benefit)	8,032,315	4,752,733	11,340,444	4,632,803
Total operating expenses	10,944,616	6,910,920	15,941,484	8,342,471
(Loss) income from operations	-8,527,219	-4,760,775	-10,863,701	-7,761,234
Other income (expense):	'	'	'	'
Interest income	16,828	1,016	38,611	2,602
Interest expense	-113,363	-92,049	-169,810	-174,494
Net other expense	-96,535	-91,033	-131,199	-171,892
(Loss) income before income taxes	-8,623,754	-4,851,808	-10,994,900	-7,933,126
Income tax benefit (expense)	-19,196	387,983	-38,543	656,994
Net (loss) income	-8,642,950	-4,463,825	-11,033,443	-7,276,132
Other comprehensive income - foreign currency translation adjustment	153,664	2,218,896	-961,320	3,038,663
Comprehensive (loss) income	($8,489,286)	($2,244,929)	($11,994,763)	($4,237,469)
Loss per share:	'	'	'	'
Basic	($0.20)	($0.10)	($0.25)	($0.17)
Diluted	($0.20)	($0.10)	($0.25)	($0.17)

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Operating activities:	'	'
Net loss	($11,033,443)	($7,276,132)
Depreciation and amortization.	596,819	697,549
Bad debt expense	11,340,444	4,632,803
Deferred income taxes	38,543	-656,994
Inventory obsolescence reserve	0	3,720,073
Changes in operating assets and liabilities:	'	'
Trade Accounts receivable	-3,398,497	1,672,236
Other receivables	-309,181	-468,509
Advances to suppliers	429,998	-648,436
Inventory	4,781,501	1,745,256
Trade accounts payable	714,380	1,403,638
Accrued taxes payable	-35,513	-1,767,344
Other payables and accrued expenses	-124,072	-15,103
Advances from customers	-587,165	19,003
Net cash provided by operating activities	2,413,814	3,058,040
Cash Flows from Investing Activities:	'	'
Advances for purchases of intangible assets	0	-4,572,982
Construction in process	-4,543,490	-49,030
Net cash used in investing activities	-4,543,490	-4,622,012
Cash Flows from Financing Activities:	'	'
Proceeds from construction term loan	605,347	0
Net cash provided by financing activities	605,347	0
Effect of Exchange Rate Changes on Cash	-43,066	58,787
Net increase (decrease) in cash and cash equivalents	-1,567,395	-1,505,185
Cash and cash equivalents at beginning of period	5,993,139	4,029,708
Cash and cash equivalents at end of period	4,425,744	2,524,523
Supplemental Disclosures of Cash Flow Information:	'	'
Cash paid for interest	621,841	167,819
Cash paid for Income taxes	0	1,716,064
Supplemental Noncash Investing and Financing Activities:	'	'
Accounts payable for purchases of property and equipment	35,275	153,621
Accounts receivable collected with banker's acceptances	994,624	5,756,309
Inventory purchased with banker's acceptances	1,235,956	2,099,243
Advances for purchases of equipment paid with banker's acceptances	$0	$2,063,840

1_BASIS_OF_PRESENTATION

1. BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2014
BASIS OF PRESENTATION:	'
BASIS OF PRESENTATION	'
	Organization and Nature of Operations – China Pharma Holdings, Inc., a Nevada corporation, owns 100% of Onny Investment Limited (“Onny”), a British Virgin Islands corporation, that in turn owns 100% of Hainan Helpson Medical & Biotechnology Co., Ltd (“Helpson”), a corporation organized under the laws of the People's Republic of China (the “PRC”). China Pharma Holdings, Inc. and its subsidiaries are referred to herein as the Company.
	The Foreign Investment Industrial Catalogue (the “Catalogue”) jointly issued by the China’s Ministry of Commerce and the National Development and Reform Commission (as the latest version is the year 2012 version, effective January 30, 2012) classified various industries/businesses into three different categories: (i) encouraged for foreign investment; (ii) restricted to foreign investment; and (iii) prohibited from foreign investment. For any industry/business not covered by any of these three categories, they will be deemed industries/businesses permitted for foreign investment. A typical foreign investment ownership restriction in the pharmaceutical industry is that a foreign investment enterprise (the “FIE”) shall not have the whole or majority of its equity interests owned by a foreign owner if the FIE establishes more than 30 branch stores and distributes a variety of brands in those franchise stores, which is not the case of the Company’s business.
	Helpson manufactures and markets generic and branded pharmaceutical products as well as biochemical products primarily to hospitals and private retailers located throughout the PRC. The Company believes Helpson’s business is not subject to any ownership restrictions prescribed under the Catalogue. Onny acquired 100% of the ownership in Helpson from Helpson’s three former shareholders on May 25, 2005 by entry into an Equity Transfer Agreement with such three parties on May 25, 2005. The transaction was approved by the Commercial Bureau of Hainan Province on June 12, 2005 and Helpson received the Certificate of Approval for Establishing of Enterprises with Foreign Investment in the PRC on the same day and its business license evidencing its WFOE (Wholly Foreign Owned Enterprise) status on June 21, 2005.
	The Company has and continues to acquire well-accepted medical formulas to add to its diverse portfolio of Western and Chinese medicines.
	Consolidation and Basis of Presentation – The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are expressed in United States dollars. The accompanying consolidated financial statements include the accounts and operations of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
	Helpson’s functional currency is the Chinese Renminbi. Helpson’s revenue and expenses are translated into United States dollars at the average exchange rate for the period. Assets and liabilities are translated at the exchange rate as of the end of the reporting period. Gains or losses from translating Helpson’s financial statements are included in accumulated other comprehensive income, which is a component of stockholders’ equity. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity that is a party to the transaction are included in the results of operations.
	Reclassification - The Company has made certain reclassifications to the condensed consolidated statement of operations and cash flows for the three and six months ended June 30, 2013 to conform to the presentation for the three and six months ended June 30, 2014. These reclassifications had no effect on the condensed consolidated balance sheets, results of operations or cash flows as of or for the six months ended June 30, 2013.
	Condensed Financial Statements – The accompanying unaudited condensed consolidated financial statements were prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “Commission”). Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Management of the Company (“Management”) believes the following disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 filed with the Commission on March 20, 2014.
	These unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) that, in the opinion of Management, are necessary to present fairly the consolidated financial position and results of operations of the Company for the periods presented. Operating results for the six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.
	Accounting Estimates - The preparation of financial statements in conformity with U.S. GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
	Basic and Diluted (Loss) Earnings per Common Share - Basic (loss) earnings per common share is computed by dividing net (loss) income by the weighted-average number of common shares outstanding during the period. Diluted (loss) earnings per share is calculated to give effect to potentially issuable dilutive common shares.
	The following table is a presentation of the numerators and denominators used in the calculation of basic and diluted (loss) earnings per share:
		For the Three Months						For the Six Months
		Ended June 30,						Ended June 30,
		2014			2013			2014			2013
	Net loss	$	(8,642,950	)	$	(4,463,825	)	$	(11,033,443	)	$	(7,276,132	)
	Basic weighted-average common shares outstanding		43,579,557			43,579,557			43,579,557			43,579,557
	Effect of dilutive securities:
	Warrants		-			-			-			-
	Options		-			-			-			-
	Diluted weighted-average common shares outstanding		43,579,557			43,579,557			43,579,557			43,579,557
	Basic loss per share	$	(0.20	)	$	(0.10	)	$	(0.25	)	$	(0.17	)
	Diluted loss per share	$	(0.20	)	$	(0.10	)	$	(0.25	)	$	(0.17	)
	The following potential common shares were not included in the computation of diluted (loss) earnings per share as their effect would have been anti-dilutive:
		For the Three Months						For the Six Months
		Ended June 30,						Ended June 30,
		2014			2013			2014			2013
	Warrants with exercise prices of $3.00 to $3.80 per share		-			150,000			-			150,000
	Options with an exercise price of $2.54 to $3.47 per share		-			50,000			-			50,000
	Total		-			200,000			-			200,000

2_INVENTORY

2. INVENTORY	6 Months Ended
	Jun. 30, 2014
Inventory Disclosure [Abstract]	'
INVENTORY	'
	Inventory consisted of the following:
		June 30,			December 31,
		2014			2013
	Raw materials	$	24,248,940		$	28,259,707
	Work in process		1,164,355			853,602
	Finished goods		3,516,300			3,590,937
			28,929,595			32,704,246
	Obsolescence reserve		(7,968,701	)		(8,027,126	)
	Total Inventory	$	20,960,894		$	24,677,120
	As of June 30, 2014, the entire work-in process inventory includes the raw material and other production costs related to the trial production at the new injectable lines of the new facility. Under the current regulation, the Company is allowed to sell qualified finished goods from trial production once the new production line obtains the new GMP certification. Management estimated this balance to be categorized as qualified finished goods upon obtaining the new GMP certification.

3_PROPERTY_AND_EQUIPMENT

3. PROPERTY AND EQUIPMENT	6 Months Ended
	Jun. 30, 2014
Property, Plant and Equipment [Abstract]	'
PROPERTY AND EQUIPMENT	'
	Property and equipment consisted of the following:
	CHINA PHARMA HOLDINGS, INC. AND SUBSIDIARIES
	NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
	(Unaudited)
		June 30,			December 31,
		2014			2013
	Permit of land use	$	457,609		$	460,964
	Building		2,476,466			2,494,623
	Plant, machinery and equipment		6,705,795			6,671,620
	Motor vehicle		150,567			151,670
	Office equipment		238,423			229,210
	Construction in progress		29,715,265			25,497,600
	Total		39,744,125			35,505,687
	Less: accumulated depreciation		(5,628,507	)		(5,264,350	)
	Property and Equipment, net	$	34,115,618		$	30,241,337
	Construction in progress consists primarily of the construction of a new production facility and the acquisition of related equipment and capitalized interest during the construction period.  A reconciliation of total interest cost incurred to interest expense as recognized in the consolidated statement of operations is as follows:
		For the Three Months						For the Six Months
		Ended June 30,						Ended June 30,
		2014			2013			2014		2013
	Total interest cost incurred	$	345,626		$	92,049		$	621,841	$	174,494
	Interest cost capitalized		232,263			-			452,031		-
	Interest expense	$	113,363		$	92,049		$	169,810	$	174,494
	Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows:
	Asset	Life - years
	Permit of land use	40 - 70
	Building	20 - 35
	Plant, machinery and equipment	10
	Motor vehicle	10-May
	Office equipment	5-Mar
	For the three and six months ended June 30, 2014 and 2013, depreciation expense was $201,580 and $215,962, $403,489 and $430,368 respectively.

4_INTANGIBLE_ASSETS

4. INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]	'
INTANGIBLE ASSETS	'
	Intangible assets represent the cost of medical formulas approved for production by the China Food and Drug Administration (“CFDA”) in China. During the six months ended June 30, 2014, the Company did not obtain CFDA production approval for any medical formula and therefore there were no costs reclassified from advances to medical formulas.
	Approved medical formulas are amortized from the date CFDA approval is obtained over their individually identifiable estimated useful life, which ranges from ten to thirteen years.  It is at least reasonably possible that a change in the estimated useful lives of the medical formulas could occur in the near term due to changes in the demand for the drugs and medicines produced from these medical formulas. For the three and six months ended June 30, 2014 and 2013, amortization expense relating to intangible assets was $96,284 and $131,119, $193,330 and $267,181, respectively. Medical formulas typically do not have a residual value at the end of their amortization period.
	The Company evaluates each approved medical formula for impairment at the date of CFDA approval, when indications of impairment are present and at the date of each financial statement. The Company’s evaluation is based on an estimated undiscounted net cash flow model, considering currently available market data for the related drug and the Company’s estimated market share. If the carrying value of the medical formula exceeds the estimated future net cash flows, an impairment loss is recognized for the excess of the carrying value over the discounted estimated future net cash flows. As a result of the evaluation, the Company has determined that each medical formula continues to provide benefits to the Company and no impairment was recognized during the six months ended June 30, 2014 or 2013.
	At June 30, 2014 and December 31, 2013, intangible assets consisted solely of CFDA approved medical formulas as follows:
		June 30,			December 31,
		2014			2013
	Gross carrying amount	$	5,484,573		$	5,524,785
	Accumulated amortization		(3,978,083	)		(3,812,992	)
	Net carrying amount	$	1,506,490		$	1,711,793

5_ADVANCES_FOR_PURCHASES_OF_IN

5. ADVANCES FOR PURCHASES OF INTANGIBLE ASSETS.	6 Months Ended
	Jun. 30, 2014
ADVANCES FOR PURCHASES OF INTANGIBLE ASSETS	'
ADVANCES FOR PURCHASES OF INTANGIBLE ASSETS.	'
	In order to expand the number of medicines manufactured and marketed by the Company, it has entered into contracts with independent laboratories for the purchase of medical formulas. Although CFDA approval had not been obtained for these medical formulas as of the dates of the respective contracts, the objective of the contracts is for the Company to purchase CFDA-approved medical formulas once the CFDA approval process is completed. Some of the medical formulas currently in the CFDA approval process also come with patents. As of June 30, 2014, the Company had received the title to two unexpired patents that relate to medical formulas currently in the CFDA approval process.
	Prior to entering into the contracts, the laboratories typically have completed all required research and development to determine the medical formula for and the method of production of the generic medicine. The application to the CFDA for production approval must be made by the production facility that will produce the related product. As a result, a contract typically provides that the Company buys the medical formula from the laboratory and the laboratory is required to assist the Company in applying for and obtaining the production approval from the CFDA.
	A typical CFDA approval process for the production of a generic medical product involves a number of steps that generally require three to five years to complete. If the medical formula is purchased at the point when the generic medical product receives the CFDA’s approval for a clinical study, which is very typical for the Company, the clinical study that follows will usually take from one and a half to three years to complete. After the clinical study is completed, the results are submitted to the CFDA and a production approval application is filed with the CFDA. In most cases, it will take between eight to eighteen months to prepare and submit the production approval application and obtain CFDA approval. Upon approving the generic medical product, the CFDA issues a production certificate and the Company can produce and sell the generic medical product. As a result of this process, CFDA approval is expected to be received in approximately two to five years from the dates of the medical formula contracts. However, the actual time needed could be even longer due to the improved criteria in the drug registration process.
	Under the terms of the contracts, the laboratories are required to assist the Company in obtaining production approval for the medical formulas from the CFDA. Management monitors the status of each medical formula on a regular basis in order to assess whether the laboratories are performing adequately under the contracts. If a medical product is not approved by the CFDA, as evidenced by their issuance of a denial letter, or if the laboratory breaches the contract, the laboratory is required under the contract to provide a refund to the Company of the full amount of the payments made to the laboratory for that formula, or the Company can require the application of those payments to another medical formula with the same laboratory. As a result of the refund right, the Company is ultimately purchasing an approved medical product. Accordingly, payments made prior to the issuance of production approval by the CFDA are recorded as advances for purchases of intangible assets.
	To date, no formula has failed to receive CFDA production approval nor has the Company been informed or become aware of any formula that may fail to receive such approval. However, there is no assurance that the medical products will receive production approval and if the Company does not receive such approval, it will enforce its contractual rights to receive the refund from the laboratory or have the payments applied to another medical formula with the same laboratory.
	At June 30, 2014, the Company was obligated to pay laboratories and others approximately $5.42 million upon completion of the various phases of contracts to provide CFDA production approval of medical formulas.

6_RELATED_PARTY_TRANSACTIONS

6. RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2014
Related Party Transactions [Abstract]	'
RELATED PARTY TRANSACTIONS	'
	Total advances owing to the board member were $1,354,567 as of June 30, 2014 and December 31, 2013 and are recorded as other payables – related parties on the accompanying condensed consolidated balance sheets. The advances bear interest at a rate of 1.0% per year.  Total interest expense of $6,672 and $6,672 was recognized for the six months ended June 30, 2014 and 2013, respectively.

7_NOTES_PAYABLE

7. NOTES PAYABLE	6 Months Ended
	Jun. 30, 2014
NOTES PAYABLES	'
NOTES PAYABLES	'
	On November 1, 2013 the Company entered into a revolving line of credit with a bank in the amount of RMB 30,000,000. Advances on the line of credit are due one year from the date of the advance and are collateralized by certain land use rights, buildings and accounts receivable and bear interest at an annual rate of 6.6% (based upon 110% of the PRC government’s current short term rate of 6.00%). The Company’s Chief Executive Officer and Chair of the board of directors personally guaranteed the line of credit.
	The outstanding balance due under the revolving line of credit was RMB 30,000,000 as of June 30, 2014 and December 31, 2013 ($4,873,928 as of June 30, 2014 and $4,909,662 as of December 31, 2013).  The Company has no additional amounts available to it under this line of credit.  This amount has been classified as short-term notes payable in the accompanying condensed consolidated balance sheets at June 30, 2014 and December 31, 2013.

8_CONSTRUCTION_LOAN_FACILITY

8. CONSTRUCTION LOAN FACILITY	6 Months Ended
	Jun. 30, 2014
CONSTRUCTION LOAN FACILITY	'
CONSTRUCTION LOAN FACILITY	'
	The Company had drawn down an aggregate of $12,997,141, which represented the total loan facility amount of RMB 80,000,000 from a construction loan facility dated June 21, 2013. The loan facility is for an eight-year term, which commenced on July 11, 2013, the initial draw-down date and is from the same bank that currently provides the line of credit as discussed in Note 7.  The proceeds of the loan were used for and are collateralized by the construction of the Company’s new production facility and the included production line equipment and machinery. The loan currently bears interest at 7.205%, based upon 110% of the PRC government’s eight-year term rate effective on the actual draw-down date, subject to annual adjustments based on 110% of the floating rate for the same type of loan on the anniversary from the draw-down date and its subsequent anniversary dates.  The loan requires interest only payments for the first two years. Beginning July 11, 2015, the balance of the principal is due in annual installments over the next six years through July 11, 2021. At June 30, 2014, the Company had no additional amounts available to it under this facility.
	Fair Value of Notes Payable and Construction Loan Facility – Based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities, the carrying amounts of notes payable and the construction loan facility outstanding as of June 30, 2014 and December 31, 2013 approximated their fair value because of either the immediate or short-term maturity of these financial instruments or because the underlying instruments bear interest rates that approximated current market rates.

9_INCOME_TAXES

9. INCOME TAXES	6 Months Ended
	Jun. 30, 2014
Income Tax Disclosure [Abstract]	'
INCOME TAXES	'
	Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax laws or rates are recognized in operations in the period that includes the enactment date.
	Undistributed earnings of Helpson, the Company’s foreign subsidiary, since its acquisition, amounted to approximately $83.2 million at June 30, 2014. Those earnings, as well as the investment in Helpson of approximately $23.3 million, are considered to be indefinitely reinvested and, accordingly, no U.S. federal or state income taxes have been provided thereon. Upon distribution of those earnings in the form of dividends or otherwise, the Company would be subject to U.S. federal and state income taxes (net of an adjustment for foreign tax credits) and withholding taxes payable to the PRC. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable because of the complexities associated with its hypothetical calculation; however, unrecognized foreign tax credits may be available to reduce a portion of the U.S. tax liability.
	Under current tax law in the PRC, the Company is and will be subject to the following enterprise income tax rates:
		Enterprise Income Tax Rate
	Year
	2014	15%
	2015	15%
	2016	15%
	Thereafter	25%
	The provision for income taxes consisted of the following:
		Three Months Ended June 30,					Six Months Ended June 30,
		2014		2013			2014		2013
	Current	$	-	$	-		$	-	$	-
	Deferred		19,196		(387,983	)		38,543		(656,994	)
	Total income tax expense (benefit)	$	19,196	$	(387,983	)	$	38,543	$	(656,994	)
	During the six months ended June 30, 2014, the Company utilized approximately $190,000 of the net operating loss available to it for PRC tax purposes. The Company has remaining net operating loss carryforwards for PRC tax purposes of approximately $6.64 million at June 30, 2014 which is available to offset future taxable income through 2018.
	In assessing the realizability of deferred tax assets, Management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.  The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those differences become deductible or tax loss carry forwards are utilized.  Management considers projected future taxable income and tax planning strategies in making this assessment.  Based upon an assessment of the level of historical taxable income and projections for future taxable income over the periods on which the deferred tax assets are deductible or can be utilized, Management believes it is not likely the Company will realize all of the benefits of the deferred tax assets as of June 30, 2014 and December 31, 2013.  Therefore, the Company has provided for a valuation allowance against its deferred tax assets of $5,503,381 and $4,915,960 as of June 30, 2014 and December 31, 2013, respectively.
	The Company has also incurred various other taxes, comprised primarily of business taxes, value-added taxes, urban construction taxes, education surcharges and others. Any unpaid amounts are reflected on the balance sheets as accrued taxes payable.

10_FAIR_VALUE_MEASUREMENTS

10. FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2014
Fair Value Disclosures [Abstract]	'
FAIR VALUE MEASUREMENTS	'
	Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, a hierarchy has been established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data. Level 3 – Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
	The Company uses fair value to measure the value of the banker’s acceptance notes it holds.  The banker’s acceptance notes are recorded at cost which approximates fair value.  The Company held the following assets recorded at fair value as of June 30, 2014 and December 31, 2013:
				Fair Value Measurements at
				Reporting Date Using
	Description	30-Jun-14		Level 1		Level 2		Level 3
	Banker's acceptance notes	$	92,832	$	-	$	92,832	$	-
	Total	$	92,832	$	-	$	92,832	$	-
				Fair Value Measurements at
				Reporting Date Using
	Description	31-Dec-13		Level 1		Level 2		Level 3
	Banker's acceptance notes	$	336,003	$	-	$	336,003	$	-
	Total	$	336,003	$	-	$	336,003	$	-

11_STOCKHOLDERS_EQUITY

11. STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2014
Equity [Abstract]	'
STOCKHOLDERS' EQUITY	'
	Preferred and Common Stock – The total number of authorized shares is 95,000,000 shares of common stock and 5,000,000 shares of preferred stock. The preferred stock may be issued in series with such designations, preferences, stated values, rights, qualifications or limitations as determined solely by the Company’s Board of Directors.
	Stock and Stock Options – On November 12, 2010, the Company’s Board of Directors adopted, and on December 22, 2010 its stockholders approved the Company’s 2010 Incentive Plan (the “Plan”), which gave the Company the ability to grant stock options, restricted stock, stock appreciation rights and performance units to its employees, directors and consultants, or those who will become employees, directors and consultants of the Company and/or its subsidiaries. The Plan currently allows for equity awards of up to 4,000,000 shares of common stock. Through June 30, 2014, there were 175,000 shares of restricted stock granted and outstanding under the Plan.
	There were no securities issued from the Plan during the six months ended June 30, 2014 and at June 30, 2014 there was no unrecognized compensation expense related to the securities granted.

12_CONTINGENCIES

12. CONTINGENCIES	6 Months Ended
	Jun. 30, 2014
CONTINGENCIES	'
CONTINGENCIES	'
	Economic environment - Substantially all of the Company's operations are conducted in the PRC, and therefore the Company is subject to special considerations and significant risks not typically associated with companies operating in the United States of America. These risks include, among others, the political, economic and legal environments and fluctuations in the foreign currency exchange rate. The Company's results from operations may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. The unfavorable changes in global macroeconomic factors may also adversely affect the Company’s operations.
	In addition, all of the Company's revenue is denominated in the PRC's currency of Renminbi (RMB), which must be converted into other currencies before remittance out of the PRC. Both the conversion of RMB into foreign currencies and the remittance of foreign currencies abroad require approval of the PRC government.

13_CONCENTRATIONS

13. CONCENTRATIONS	6 Months Ended
	Jun. 30, 2014
Risks and Uncertainties [Abstract]	'
CONCENTRATIONS	'
	At June 30, 2014, two customers accounted for 15.5% and 10.6% of accounts receivable.  At December 31, 2013, two customers accounted for 14.5% and 11.2% of accounts receivable.
	For the six months ended June 30, 2014, one customer accounted for 15.9% of sales. For the six months ended June 30, 2013, two customers accounted for 10.3% and 10.2% of sales, respectively. .
	For the six months ended June 30, 2014 and 2013, purchases from one supplier accounted for 14.4% and 26.9% of raw material purchases, respectively.

14_SUBSEQUENT_EVENTS

14. SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2014
Subsequent Events [Abstract]	'
14. SUBSEQUENT EVENTS	'
	On July 18, 2014, the Company’s manufacturing facilities and inventory sustained storm damage from a powerful tropical typhoon that hit Haikou on that date. The Company’s initial estimate of the loss exceeds $3.25 million (RMB20 million). The Company is still in the process of assessing the damage caused by the storm and this estimate may change in the future. The Company expects minor insurance compensation as only the building of new plant was insured and the damage to it was minor. The old plant was restored to the operational mode at the end of July.

1_Accounting_Policies_Policies

1. Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2014
Accounting Policies (Policies)	'
Organization and Nature of Operations	'
	Organization and Nature of Operations – China Pharma Holdings, Inc., a Nevada corporation, owns 100% of Onny Investment Limited (“Onny”), a British Virgin Islands corporation, that in turn owns 100% of Hainan Helpson Medical & Biotechnology Co., Ltd (“Helpson”), a corporation organized under the laws of the People's Republic of China (the “PRC”). China Pharma Holdings, Inc. and its subsidiaries are referred to herein as the Company.
	The Foreign Investment Industrial Catalogue (the “Catalogue”) jointly issued by the China’s Ministry of Commerce and the National Development and Reform Commission (as the latest version is the year 2012 version, effective January 30, 2012) classified various industries/businesses into three different categories: (i) encouraged for foreign investment; (ii) restricted to foreign investment; and (iii) prohibited from foreign investment. For any industry/business not covered by any of these three categories, they will be deemed industries/businesses permitted for foreign investment. A typical foreign investment ownership restriction in the pharmaceutical industry is that a foreign investment enterprise (the “FIE”) shall not have the whole or majority of its equity interests owned by a foreign owner if the FIE establishes more than 30 branch stores and distributes a variety of brands in those franchise stores, which is not the case of the Company’s business.
	Helpson manufactures and markets generic and branded pharmaceutical products as well as biochemical products primarily to hospitals and private retailers located throughout the PRC. The Company believes Helpson’s business is not subject to any ownership restrictions prescribed under the Catalogue. Onny acquired 100% of the ownership in Helpson from Helpson’s three former shareholders on May 25, 2005 by entry into an Equity Transfer Agreement with such three parties on May 25, 2005. The transaction was approved by the Commercial Bureau of Hainan Province on June 12, 2005 and Helpson received the Certificate of Approval for Establishing of Enterprises with Foreign Investment in the PRC on the same day and its business license evidencing its WFOE (Wholly Foreign Owned Enterprise) status on June 21, 2005.
	The Company has and continues to acquire well-accepted medical formulas to add to its diverse portfolio of Western and Chinese medicines.
Consolidation and Basis of Presentation	'
	Consolidation and Basis of Presentation – The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are expressed in United States dollars. The accompanying consolidated financial statements include the accounts and operations of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
	Helpson’s functional currency is the Chinese Renminbi. Helpson’s revenue and expenses are translated into United States dollars at the average exchange rate for the period. Assets and liabilities are translated at the exchange rate as of the end of the reporting period. Gains or losses from translating Helpson’s financial statements are included in accumulated other comprehensive income, which is a component of stockholders’ equity. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity that is a party to the transaction are included in the results of operations.
Reclassification	'
	Reclassification - The Company has made certain reclassifications to the condensed consolidated statement of operations and cash flows for the three and six months ended June 30, 2013 to conform to the presentation for the three and six months ended June 30, 2014. These reclassifications had no effect on the condensed consolidated balance sheets, results of operations or cash flows as of or for the six months ended June 30, 2013.
Condensed Financial Statements	'
	Condensed Financial Statements – The accompanying unaudited condensed consolidated financial statements were prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “Commission”). Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Management of the Company (“Management”) believes the following disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 filed with the Commission on March 20, 2014.
	These unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) that, in the opinion of Management, are necessary to present fairly the consolidated financial position and results of operations of the Company for the periods presented. Operating results for the six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.
Accounting Estimates	'
	Accounting Estimates - The preparation of financial statements in conformity with U.S. GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Basic and Diluted (Loss) Earnings per Common Share	'
	Basic and Diluted (Loss) Earnings per Common Share - Basic (loss) earnings per common share is computed by dividing net (loss) income by the weighted-average number of common shares outstanding during the period. Diluted (loss) earnings per share is calculated to give effect to potentially issuable dilutive common shares.
	The following table is a presentation of the numerators and denominators used in the calculation of basic and diluted (loss) earnings per share:
		For the Three Months						For the Six Months
		Ended June 30,						Ended June 30,
		2014			2013			2014			2013
	Net loss	$	(8,642,950	)	$	(4,463,825	)	$	(11,033,443	)	$	(7,276,132	)
	Basic weighted-average common shares outstanding		43,579,557			43,579,557			43,579,557			43,579,557
	Effect of dilutive securities:
	Warrants		-			-			-			-
	Options		-			-			-			-
	Diluted weighted-average common shares outstanding		43,579,557			43,579,557			43,579,557			43,579,557
	Basic loss per share	$	(0.20	)	$	(0.10	)	$	(0.25	)	$	(0.17	)
	Diluted loss per share	$	(0.20	)	$	(0.10	)	$	(0.25	)	$	(0.17	)
	The following potential common shares were not included in the computation of diluted (loss) earnings per share as their effect would have been anti-dilutive:
		For the Three Months						For the Six Months
		Ended June 30,						Ended June 30,
		2014			2013			2014			2013
	Warrants with exercise prices of $3.00 to $3.80 per share		-			150,000			-			150,000
	Options with an exercise price of $2.54 to $3.47 per share		-			50,000			-			50,000
	Total		-			200,000			-			200,000

1_BASIS_OF_PRESENTATION_Tables

1. BASIS OF PRESENTATION (Tables)	6 Months Ended
	Jun. 30, 2014
BASIS OF PRESENTATION (Tables)	'
Presentation of the numerators and denominators used in the calculation of basic and diluted earnings per share	'
		For the Three Months						For the Six Months
		Ended June 30,						Ended June 30,
		2014			2013			2014			2013
	Net loss	$	(8,642,950	)	$	(4,463,825	)	$	(11,033,443	)	$	(7,276,132	)
	Basic weighted-average common shares outstanding		43,579,557			43,579,557			43,579,557			43,579,557
	Effect of dilutive securities:
	Warrants		-			-			-			-
	Options		-			-			-			-
	Diluted weighted-average common shares outstanding		43,579,557			43,579,557			43,579,557			43,579,557
	Basic loss per share	$	(0.20	)	$	(0.10	)	$	(0.25	)	$	(0.17	)
	Diluted loss per share	$	(0.20	)	$	(0.10	)	$	(0.25	)	$	(0.17	)
Potential common shares were not included in the computation of diluted earnings per share	'
		For the Three Months						For the Six Months
		Ended June 30,						Ended June 30,
		2014			2013			2014			2013
	Warrants with exercise prices of $3.00 to $3.80 per share		-			150,000			-			150,000
	Options with an exercise price of $2.54 to $3.47 per share		-			50,000			-			50,000
	Total		-			200,000			-			200,000

2_INVENTORY_Tables

2. INVENTORY (Tables)	6 Months Ended
	Jun. 30, 2014
INVENTORY (Tables)	'
Inventory consists	'
		June 30,			December 31,
		2014			2013
	Raw materials	$	24,248,940		$	28,259,707
	Work in process		1,164,355			853,602
	Finished goods		3,516,300			3,590,937
			28,929,595			32,704,246
	Obsolescence reserve		(7,968,701	)		(8,027,126	)
	Total Inventory	$	20,960,894		$	24,677,120

3_PROPERTY_AND_EQUIPMENT_Table

3. PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2014
PROPERTY AND EQUIPMENT (Tables)	'
Property and equipment consists	'
		June 30,			December 31,
		2014			2013
	Permit of land use	$	457,609		$	460,964
	Building		2,476,466			2,494,623
	Plant, machinery and equipment		6,705,795			6,671,620
	Motor vehicle		150,567			151,670
	Office equipment		238,423			229,210
	Construction in progress		29,715,265			25,497,600
	Total		39,744,125			35,505,687
	Less: accumulated depreciation		(5,628,507	)		(5,264,350	)
	Property and Equipment, net	$	34,115,618		$	30,241,337
A reconciliation of total interest cost incurred to interest expense	'
		For the Three Months						For the Six Months
		Ended June 30,						Ended June 30,
		2014			2013			2014		2013
	Total interest cost incurred	$	345,626		$	92,049		$	621,841	$	174,494
	Interest cost capitalized		232,263			-			452,031		-
	Interest expense	$	113,363		$	92,049		$	169,810	$	174,494
Useful lives of the assets	'
	Asset	Life - years
	Permit of land use	40 - 70
	Building	20 - 35
	Plant, machinery and equipment	10
	Motor vehicle	10-May
	Office equipment	5-Mar

4_INTANGIBLE_ASSETS_Tables

4. INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2014
Intangible Assets (Tables)	'
Intangible Assets Medical Formulas	'
		June 30,			December 31,
		2014			2013
	Gross carrying amount	$	5,484,573		$	5,524,785
	Accumulated amortization		(3,978,083	)		(3,812,992	)
	Net carrying amount	$	1,506,490		$	1,711,793

9_INCOME_TAXES_Tables

9. INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2014
INCOME TAXES (Tables)	'
Current Taxes	'
		Enterprise Income Tax Rate
	Year
	2014	15%
	2015	15%
	2016	15%
	Thereafter	25%
Provision For Income Taxes	'
		Three Months Ended June 30,					Six Months Ended June 30,
		2014		2013			2014		2013
	Current	$	-	$	-		$	-	$	-
	Deferred		19,196		(387,983	)		38,543		(656,994	)
	Total income tax expense (benefit)	$	19,196	$	(387,983	)	$	38,543	$	(656,994	)

10_FAIR_VALUE_MEASUREMENTS_Tab

10. FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2014
FAIR VALUE MEASUREMENTS (Tables)	'
Assets Fair Value	'
				Fair Value Measurements at
				Reporting Date Using
	Description	30-Jun-14		Level 1		Level 2		Level 3
	Banker's acceptance notes	$	92,832	$	-	$	92,832	$	-
	Total	$	92,832	$	-	$	92,832	$	-
				Fair Value Measurements at
				Reporting Date Using
	Description	31-Dec-13		Level 1		Level 2		Level 3
	Banker's acceptance notes	$	336,003	$	-	$	336,003	$	-
	Total	$	336,003	$	-	$	336,003	$	-

1_BASIS_OF_PRESENTATION_Detail

1. BASIS OF PRESENTATION (Details Narrative)	Jun. 30, 2014
Organization and operations	'
Percentage of share owned by China Pharma Holdings Inc of Onny Investment Limited	100.00%
Percentage of share owned by China Pharma Holdings Inc of Helpson Medical & Biotechnology Co., Ltd.	100.00%

1_Basic_and_Diluted_Earnings_p

1. Basic and Diluted Earnings per Common Share (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Basic And Diluted Earnings Per Common Share Details	'	'	'	'
Net loss	($8,642,950)	($4,463,825)	($11,033,443)	($7,276,132)
Basic weighted-average common shares outstanding	43,579,557	43,579,557	43,579,557	43,579,557
Warrants	'	'	'	'
Options	'	'	'	'
Diluted weighted-average common shares outstanding	43,579,557	43,579,557	43,579,557	43,579,557
Basic loss per share	($0.20)	($0.10)	($0.25)	($0.17)
Diluted loss per share	($0.20)	($0.10)	($0.25)	($0.17)

1_BASIS_OF_PRESENTATION_POLICI

1. BASIS OF PRESENTATION POLICIES (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Basis Of Presentation Policies Details	'	'	'	'
Warrants with exercise prices of $3.00 to $3.80 per share	'	150,000	'	150,000
Options with an exercise price of $2.54 to $3.47 per share	'	50,000	'	50,000
Total Warrants And Options	'	200,000	'	200,000

2_Inventory_Details

2. Inventory (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Inventory Details	'	'
Raw materials	$24,248,940	$28,259,707
Work in process	1,164,355	853,602
Finished goods	3,516,300	3,590,937
Inventory Gross	28,929,595	32,704,246
Inventory obsolescence reserve	-7,968,701	-8,027,126
Total Inventory	$20,960,894	$24,677,120

3_Property_and_equipment_consi

3. Property and equipment consisted of the following (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Property And Equipment Consisted Of Following Details	'	'
Permit of land use	$457,609	$460,964
Building	2,476,466	2,494,623
Plant, machinery and equipment	6,705,795	6,671,620
Motor vehicle	150,567	151,670
Office equipment	238,423	229,210
Construction in progress	29,715,265	25,497,600
Total Property and Equipment	39,744,125	35,505,687
Less: accumulated depreciation details	-5,628,507	-5,264,350
Property and Equipment, net	$34,115,618	$30,241,337

3_Reconciliation_of_Total_Inte

3. Reconciliation of Total Interest incurred cost (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Reconciliation Of Total Interest Incurred Cost Details	'	'	'	'
Total interest cost incurred	$345,626	$92,049	$621,841	$174,494
Interest cost capitalized	232,263	'	452,031	'
Interest expense	($113,363)	($92,049)	($169,810)	($174,494)

3_PROPERTY_AND_EQUIPMENT_Detai

3. PROPERTY AND EQUIPMENT (Details)	6 Months Ended
	Jun. 30, 2014
Property And Equipment Details	'
Permit of land use life	'40 - 70 years
Building life	'20-35 years
Plant, machinery and equipment life	'10 years
Motor vehicle life	'5-10 years
Office equipment life	'3-5 years

3_Assets_Depreciation_Details

3. Assets Depreciation (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Assets Depreciation Details	'	'	'	'
Depreciation Expense property and equipment	$201,580	$215,962	$403,489	$430,368

4_INTANGIBLE_ASSETS_Details

4. INTANGIBLE ASSETS (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Intangible Assets Details	'	'
Gross carrying amount	$5,484,573	$5,524,785
Accumulated amortization	-3,978,083	-3,812,992
Net carrying amount	$1,506,490	$1,711,793

6_RELATED_PARTY_TRANSACTIONS_D

6. RELATED PARTY TRANSACTIONS (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013
Related Party Transactions Details	'	'	'
Adavances owing to board member	$1,354,567	$1,354,567	'
Interest rate on advances from Member of BOD	1.00%	'	'
Interest amount on advances	$6,672	'	$6,672

7_Revolving_line_of_credit_Det

7. Revolving line of credit (Details)	Jun. 30, 2014	Dec. 31, 2013	Nov. 01, 2013
	USD ($)	USD ($)	CNY
Revolving line of credit	'	'	'
Revolving line of credit with a bank	'	'	30,000,000
Annual interest rate	6.60%	'	'
Outstanding balance due under revolving line of credit (RMB 30,000,000)	$4,873,928	$4,909,662	'

8_CONSTRUCTION_LOAN_FACILITY_D

8. CONSTRUCTION LOAN FACILITY (Details) (Construction Loan, USD $)	Jun. 21, 2013
Construction Loan	'
Construction loan amount in total	$12,997,141
Loan interest rate per annum	7.21%

9_Income_Taxes_Undistributed_E

9. Income Taxes Undistributed Earnings And Income Tax Rates (Details) (USD $)	Jun. 30, 2014
Income Taxes Undistributed Earnings And Income Tax Rates Details	'
Undistributed earnings of Helpson in millions	83.2
Investment in Helpson, a foreign subsidiary for the company in millions	23.3
Enterprise Income Tax Rates for the year 2014	15.00%
Enterprise Income Tax Rates for the year 2015	15.00%
Enterprise Income Tax Rates for the year 2016	15.00%
Enterprise Income Tax Rates for Thereafter	25.00%
Net operating loss carryforwards for PRC tax purposes in millions	6.64
Net deferred tax asset	$0

9_Income_Taxes_Provision_Detai

9. Income Taxes Provision (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
INCOME TAXES Undistributed Earnings	'	'	'	'
Current tax provision	'	'	'	'
Deferred tax provision	19,196	-387,983	38,543	-656,994
Total income tax expense	$19,196	($387,983)	$38,543	($656,994)

10_FAIR_VALUE_MEASUREMENTS_Det

10. FAIR VALUE MEASUREMENTS (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Fair Value Measurements Details	'	'
Bankers acceptance notes	$92,832	$336,003
Total	92,832	336,003
Bankers acceptance notes Level 1	'	'
Total Level 1	'	'
Bankers acceptance notes Level 2	92,832	336,003
Total Level 2	92,832	336,003
Bankers acceptance notes Level 3	'	'
Total Level 3	'	'

11_Preferred_Common_Stock_And_

11. Preferred Common Stock And Warrants (Details Narrative)	Jun. 30, 2014
Preferred Common Stock And Warrants Details Narrative	'
Common shares authorized	95,000,000
Preferred shares authorized	5,000,000
Shares of restricted stock granted and outstanding under the Plan	175,000

13_CONCENTRATIONS_Details_Narr

13. CONCENTRATIONS (Details Narrative)	6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Concentrations Details Narrative	'	'	'
Percentage of accounts receivable accounted for by customer one	15.50%	'	14.50%
Percentage of accounts receivable accounted for by customer two	10.60%	'	11.20%
Percentage of sales accounted for by one customer	15.90%	'	'
Percentage of sales accounted for by first of two customers	'	10.30%	'
Percentage of sales accounted for by second of two customers	'	10.20%	'
Percentage of purchases from two supplier of raw materials	14.40%	26.90%	'